what is segmentation? correct answers aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action
-two things are stressed: meaningful groups and customized marketing mix
what is the purpose of segmentation? correct answers a business grou...
MKTG 3310 EXAM 2 || A Verified A+ Pass.
what is segmentation? correct answers aggregating prospective buyers into groups that have
common needs and will respond similarly to a marketing action
-two things are stressed: meaningful groups and customized marketing mix
what is the purpose of segmentation? correct answers a business group segments its marketing so
it can respond more effectively to the wants of groups potential buyers to increase sales and
profitability
how prevalent is the idea of segmentation? correct answers 58% think they do segmentation well
so its pretty prevalent
what do the percentages say about the prevalence segmentation? correct answers • In 2004, 59%
of companies reported using segmentation but only 14% said value was derived
• In 2014, 58% reported being strong at segmentation but only 38% claimed to differentiate
prospects from returning customers
• Only 42% of business to business reported using segmentation
• 76% of marketers do not use behavioral data
• Only 5% used segmentation for mobile "always on" customers
what is the long tail? correct answers niche products - (a good or service with features that
appeal to a particular market subgroup) the long tail is when sales are made for goods commonly
not sold but can return a profit through reduced marketing and inventory management.
what is the long tail enabled by correct answers -Breaking free of the constraints of physical
space
-Finding ways to talk to market segments economically
-new distribution systems
what does the long tail concept mean for marketing? correct answers The long tail concept for
marketing argues that products that are in low demand or have low sales volume can collectively
make up a market share that rivals or exceeds the relatively few current bestsellers or
blockbusters, but only if the store or distribution channel is large enough. Long tail marketing
involves more inventory management than product promotion, by providing a greater variety of
inventory (extending the long tail), businesses hope to reach more customers and generate more
total sales.
where does the majority of the potential revenue fall? the head of the tail? correct answers if
marketed correctly it is possible for more revenue to be generated from the tail than the head.
what are the 5 steps to segmentation? correct answers 1: Group potential buyers into segments
• Simplicity and cost effectiveness of assignment- identifying the characteristics of potential
buyers in a market and then cost-effectively assigning them to a segment
• Potential for increased profit- best segment approach is the one that maximizes the opportunity
for future profit and return on investment
, • Similarity of needs within a segment
• Difference of needs of buyers
• Potential of a marketing action to reach a segment
2: Group products to be sold into categories
3: Develop a market-product grid and estimate the size of markets
• a market product grid is a framework to relate the market segments of potential buyers to
products offered or potential marketing actions by an organization
4: Select target market
o Market size- the estimated size of the market in the segment is an important factor in deciding
whether its worth going after
o Expected growth
o Competitive position- the less competition, the more attractive the segment is
o Cost of reaching the segment
o Compatibility with the organization's objectives and resources
o Customer lifetime value
5: Take marketing actions to reach target markets
o The purpose of developing a market-product grid is to trigger marketing actions to increase
sales and profit
What is the difference in using geographic, demographic, behavioral, or psychographic variables
for segmentation? correct answers • Geographic- region (ex. Campbell Soup company produced
different flavors for different parts of the country)
• Demographic- household (Campbell packages meals with one or two servings since more than
half the households in the U.S. are made up of only one or two people)
• Psychographic- lifestyle (people of similar lifestyles tend to live near one another, have similar
interests, and buy similar offerings)
• Behavioral- Product features (groups us by what we want) usage rate; the quantity consumed or
patronage-store visits-during a specific period (how many times we use something)
what type of variable is hardest to collect? correct answers The hardest to collect is
psychographics. Because its in peoples head and you have to find it through various survey
methods
what type of variable is easiest to collect? correct answers Geographic is easiest to collect
because the information is easy to find
what type of variables are utilized the least? correct answers Behavioral and psychographics are
used the least because they are harder to find
which is the best predictor of future behavior? correct answers Past behavior and Geographic
behavior
what is the problem with demographic variables? correct answers The problem with
demographic variables is that the descriptions can apply to a lot of different people. It tends to
group people together that have very different variables this can also be the same with
geographic variables
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller FullyFocus. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £8.93. You're not tied to anything after your purchase.
